Shares of Research in Motion jumped in after-hours trading Thursday after the maker of the BlackBerry wireless device reported earnings that topped expectations.
-
RIM, based in Waterloo, Ont., said its third-quarter profit more than doubled to $370.5 million US (65 cents a share), up from $175.2 million US (31 cents a share) in the same quarter a year ago.
RIM reports in U.S. dollars.
-
"We are pleased to see continuing growth amongst business and government users, with the BlackBerry platform being deployed for a widening range of applications, and we are also pleased with the excellent consumer sales results achieved so far in the holiday buying season," RIM co-CEO Jim Balsillie said in a statement.
-
Analysts had been expecting profit of 62 cents a share, on average.
-
"They keep with the record of always beating the estimates of the street," Nick Bontis, a professor at the DeGroote School of Business, told CBC News. "As long as they keep on doing that, RIM will move onward and upward."
-
The company added another 1.65 million subscribers in the quarter, pushing its total subscriber base to 12 million.
-
Revenue doubled to $1.67 billion - also slightly above the market's consensus.
-
For the fourth quarter, RIM is forecasting revenues of $1.80 billion to $1.87 billion, and earnings of 66 to 70 cents a share.
-
It is also anticipating net subscriber account additions of 1.82 million.
-
Earnings for the fourth quarter are expected to be in the range of 66 cents to 70 cents per share diluted.
-
RIM shares ended the regular TSX trading session at $106.52, up $4.43. On the Nasdaq, RIM gained $4.86 to close at $106.99.
-
In after-hours trading in the U.S., RIM shares surged more than $10 to $117.45 by 4:30 p.m. ET.
RIM stock has more than doubled this year.